Deadline 6 Days: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Class Action Lawsuit Against Root, Inc. (ROOT) | State
RADNOR, Pa., May 12, 2021 / PRNewswire / – The law firm of Kessler Topaz Meltzer & Check, LLP is reminding investors to Root, Inc. (NASDAQ: ROOT) (“Root”) of the deadline for the security fraud class action brought on behalf of those who purchased or have purchased :: (a) Root securities between October 28, 2020 and March 8, 2021, both dates included (the “class period”); and / or (b) Ordinary Class A common stock issued in connection with Root’s initial public offering conducted on or around the company October 28, 2020 (the “IPO”).
Shareholder Deadline Reminder: Investors who have bought or acquired Root Securities during the lesson period, not later than May 18, 2021try to be appointed as the plaintiff’s principal representative of the class. For more information or to learn how to participate in this litigation, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453 or Adrienne Bell, Esq. (484) 270-1435; toll free at (844) 887-9500; per email to email@example.com; or click https://www.ktmc.com/root-inc-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=root.
Root provides insurance products and services in The United States. Root has historically focused on auto insurance and operates a direct-to-consumer model that serves customers primarily through mobile applications as well as through the root website. Before and after going public, Root described himself as an innovator in the personal insurance space with a new data and technology-driven business model that was poised to disrupt traditional insurance markets and gain disproportionate market share, also due to the telematics of Root -driven insurance approach, i.e. the collection and transmission of vehicle usage data via devices.
On 5th October 2020Root filed a registration statement on Form S-1 with the Securities and Exchange Commission (“SEC”) in connection with the initial public offering, which has been validated after several changes October 27, 2020 (the “Registration Statement”). On October 28, 2020Root went public and sold 26.8 million shares of its Class A common stock to the public $ 27.00 per share for the approximate total proceeds of $ 724.43 million. On October 29, 2020Root filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which was part of the registration statement (the “Prospectus” and, along with the registration statement, the “Offer Documents”). Throughout the classroom, defendants misrepresented Root’s cash flow needs and business prospects for auto insurance.
The truth about Roots’ cash flow needs and the auto insurance business outlook was revealed on March 9, 2021, as an analyst for Bank of America Securities Joshua Shanker (“Shanker”) initiated the coverage of Root with an “underperform” rating, assuming that Root is unlikely to have positive cash flow by 2027, and stated that Root “does not require insignificant cash inflows from the capital markets to maintain its cash flow. Shanker also noted that insurers Progressive, Allstate and Berkshire Hathaways Geico would continue to hurt Root’s profitability, with Progressive and Allstate having a “significant advantage over Root in terms of amount” [telematics] Data as well as preoccupation with the data “used to evaluate their auto insurance.
After the news, Root’s share price fell $ 0.18 per share, or 1.46% to close on $ 12.17 per share on March 9, 2021This corresponds to a total decrease of 54.93% compared to the offer price.
The Complaint alleges that the Offer Document and Defendants made false and / or misleading statements and / or failed to disclose that: (i) Root would not be expected to generate positive cash flow for at least several years after the IPO; (ii) accordingly, Root would need significant cash infusions for the foreseeable future to meet his cash flow needs; (iii) Notwithstanding Defendants’ promotion of the allegedly unique, data-driven advantages of Root, several established industry colleagues of Root did in fact have significant competitive advantages over Root, including in relation to telematics data and data binding; and (iv) as a result, Defendants’ offer documents and public statements were materially inaccurate and / or misleading throughout the teaching period and did not contain any information to be included therein.
root Investors can not later than May 18, 2021, attempt to be appointed as the class lead plaintiff by Kessler Topaz Meltzer & Check, LLP, or other attorney, or choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the dispute. To be named lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members and that the class member is adequately representing the class. Your ability to get involved in a recovery will not be affected by whether or not you will be the lead plaintiff.
Kessler Topaz Meltzer & Check, LLP, pursues class action lawsuits in state and federal courts across the country involving securities fraud, fiduciary violations, and other violations of federal and state law. Kessler Topaz Meltzer & Check, LLP, is a driving force behind corporate governance reform and has collected billions of dollars on behalf of institutional and individual investors The United States and all over the world. The company represents investors, consumers and whistleblowers (individuals who report fraudulent practices against the government and are involved in recovering government dollars). The complaint in this lawsuit was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.
Kessler Topaz Meltzer & Check, LLP
James Maro Jr., Esq.
Adrienne Bell, Esq.
280 Street of the King of Prussia
Radnor, PA 19087
(844) 887-9500 (toll free)
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